How Much Should You Put Down When Buying Rental Properties

Portland, ME Real Estate Investing & Real Estate Financial Planning™ Podcast

21-04-2023 • 47 mins

What is the ideal down payment when purchasing a rental property?

While some real estate investors may barely scrape together the minimum down payment, there are advantages to putting down more. Additionally, changing your strategy to allow for a smaller down payment may also have advantages.

In this mini-class, James discusses how different down payment amounts can affect interest rates, overall return on investment, and changes you are likely to see in both interest rate and cash flow.

Check out the video and interactive charts from this class here:

https://refp.substack.com/p/how-much-should-you-put-down-when

In this class, James discusses:

  • Not just down payment... total cost to close + reserves + probably cumulative negative cash flow
  • How much should you put down?
  • Interest rates vary based on owner-occupant and non-owner-occupant
  • Interest rates vary based on loan program
  • Interest rates vary based on down payment
  • Return in dollars - what changes and what stays the same?
  • Return on investment - how does it change with various down payment options
  • Chart showing effective interest rate for various down payment options (owner-occupant and non-owner-occupant investor loans)
  • Chart showing monthly payments for various down payment options (owner-occupant and non-owner-occupant investor loans)
  • Chart showing difference in monthly payment (and therefore cash flow) for the same down payment
  • Chart showing return in dollars for various down payment options (owner-occupant and non-owner-occupant investor loans)
  • Chart showing return on investment for various down payment options (owner-occupant and non-owner-occupant investor loans)
  • Plus much more...

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https://RealEstateFinancialPlanner.com/spreadsheet

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